Still a buy

In August, I had made a case for buying Macrovision.

Since then the stock has taken a beating, mostly the result of dumping by those guys who don't seem to be able to look beyond their own nose-tips. I reaffirm what I said there, and consider it to be an even more of a value bargain today.

It is possible that Macrovision may start seeing some interest from the likes of IBM or Computer Associates, but the fit is less-than-perfect. I expect Macrovision to remain independent, at the same time continuing its acquisition spree at a more modest pace.

With a steady cash flow, Macrovision will definitely be a great target for private equity groups, since there is enormous room for turning it into a more stingy operation.

Buying a few of its direct and indirect competitors like Altiris, Opsware, Motive, Aladdin and SupportSoft will turn it into a powerhouse down the road.

If you have patience, add more at current levels.